VA Loans and entitlement

17 March 2008

VA Loans and entitlement

Posted by VA Loan Pro under: Uncategorized .

If you are a veteran who plans to use your entitlement in the VA Home Loan Guarantee Program or who is currently using this benefit, there are some facts you should know. Many veterans use their entitlement in the VA Home Loan Guarantee Program without knowing the details of their entitlement and how they can use this valuable government benefit. Here are some important facts every veteran should know about their VA Home Loan Guarantee benefits:

• You can re-use your VA loan benefit entitlement. As long as you adhere to the VA guidelines and rules of entitlement, the VA allows you to use the home loan guarantee benefit as many times as you want.

• You can not re-use your VA loan benefit entitlement if you allow someone to assume your mortgage. Once your entitlement is tied into a specific mortgage loan, the entitlement stays with that loan until the balance of the mortgage is paid in full. This means that you are unable to re-use your home loan benefit until the person or people who assumed your mortgage loan pay off the loan.

• You are not able to re-use your VA loan benefit if your mortgage loan is foreclosed upon. Once you have experienced a foreclosure with a mortgage loan that the VA has guaranteed, your entitlement is lost and you can not use the program again.

• The VA will help you avoid foreclosure. The VA understands that circumstances can arise that cause people to have difficult financial times. Loss of employment, divorce, illness, and disability are just a few of the reasons why some veterans may have a problem paying their mortgage loan, and go into loan default. Before foreclosure occurs, you should contact the VA. They will help you communicate with your lender and find a solution to the problem in order to avoid foreclosure so that you may be able to keep your home and your entitlement in the VA Home Loan Guarantee Program.

• The VA also has grant and loan programs for disabled veterans. If you are having trouble paying your mortgage loan or are in default as a result of a disability, you may be entitled to additional benefits from the VA that will help you keep your home.

If you are a veteran who is considering using the VA Home Loan Guarantee Program you should thoroughly review the VA benefit and entitlement policies before proceeding. The VA offers buyer counseling for veterans before using the program, and has housing specialists available in case there are any questions about the VA loan process. A VA approved lender will also be able to give you valuable information about the VA Home Loan Guarantee Program.

For more information on the VA Home Loan Guarantee Program, entitlement, and guidelines go to http://www.homeloans.va.gov/veteran.htm

3 Comments so far...

No down payment with the VA Loan Program | VA Loan Homes Says:

31 March 2008 at 8:56 pm.

[…] Program. Even though you do not have to have a down payment to purchase a home through the VA Home Loan Guarantee Program, you do have to follow the rules of the program to use this no down payment […]